UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

OMB APPROVAL

 

OMB Number:    3235-0578
Expires:    May 31, 2007
Estimated average burden hours per response........21.09

 

 

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-004889

 

 

H&Q Life Sciences Investors

(Exact name of registrant as specified in charter)

 

30 Rowes Wharf, Boston, MA

 

02110

(Address of principal executive offices)

 

(Zip code)

 

 

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

617-772-8500

 

 

Date of fiscal year end:

September 30

 

 

 

 

Date of reporting period:

6/30/2006

 

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-% (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b-15 under the Investment Company Act of 1940 (17CFR 270.3b1-5).  The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.




Item 1.  Schedule of Investments.




H&Q LIFE SCIENCES INVESTORS

SCHEDULE OF INVESTMENTS

JUNE 30, 2006

(Unaudited)

SHARES

 

 

 

VALUE

 

 

 

CONVERTIBLE SECURITIES AND WARRANTS – 18.8% of Net Assets

 

 

 

 

 

Convertible Preferred (Restricted) – 17.0%

 

 

 

 

 

Drug Discovery Technologies – 1.8%

 

 

 

1,587,302

 

Agilix Corporation Series B (a)(b)

 

$

94,540

 

250,000

 

Ceres, Inc. Series C (a)

 

1,500,000

 

21,462

 

Ceres, Inc. Series C-1 (a)

 

128,772

 

175,540

 

Ceres, Inc. Series D (a)

 

1,053,240

 

174,848

 

Cougar Biotechnology Inc. Series A (a)

 

787,498

 

932,488

 

Galileo Pharmaceuticals, Inc. Series F-1 (a)

 

93

 

1,846,154

 

Matritech Inc. warrants (expiration 1/17/11) (a)

 

0

 

200,000

 

Zyomyx, Inc. Series A New (a)

 

20,000

 

200

 

Zyomyx, Inc. Series B New (a)

 

20

 

 

 

Emerging Biopharmaceuticals – 5.1%

 

 

 

744,921

 

Agensys, Inc. Series C (a)

 

2,200,201

 

1,724,138

 

Corus Pharma, Inc. Series C (a)

 

1,000,000

 

1,212,121

 

Raven biotechnologies, Inc. Series B (a)

 

1,006,060

 

1,872,772

 

Raven biotechnologies, Inc. Series C (a)

 

1,554,401

 

2,722,014

 

Raven biotechnologies, Inc. Series D (a)

 

800,000

 

1,415,385

 

TargeGen, Inc. Series C (a)

 

1,840,001

 

30,920

 

Therion Biologics Corporation Series A (a)

 

309

 

160,000

 

Therion Biologics Corporation Series B (a)

 

1,600

 

271,808

 

Therion Biologics Corporation Series C (a)

 

2,718

 

203,856

 

Therion Biologics Corp. warrants (expiration 9/26/06) (a)

 

0

 

22,224

 

Therion Biologics Corporation Series C-2 (a)

 

222

 

16,668

 

Therion Biologics Corp. warrants (expiration 8/18/08) (a)

 

0

 

28,991

 

Therion Biologics Corporation Sinking Fund (a)

 

290

 

1,645,000

 

Xanthus Life Sciences, Inc. Series B (a)

 

1,645,000

 

 

 

Healthcare Services – 3.8%

 

 

 

1,051,429

 

CardioNet, Inc. Series C (a)

 

3,680,001

 

35,254

 

CardioNet warrants (expiration 5/01/11) (a)

 

0

 

322,168

 

CytoLogix Corporation Series A (a) (b)

 

265,789

 

151,420

 

CytoLogix Corporation Series B (a) (b)

 

124,922

 

3,589,744

 

PHT Corporation Series D (a) (b)

 

2,800,000

 

802,996

 

PHT Corporation Series E (a) (b)

 

626,337

 

 

 

Medical Devices and Diagnostics – 6.3%

 

 

 

3,235,293

 

Concentric Medical, Inc. Series B (a) (b)

 

4,529,410

 

1,162,790

 

Concentric Medical, Inc. Series C (a) (b)

 

1,627,906

 

455,333

 

Concentric Medical, Inc. Series D (a) (b)

 

637,466

 

177,778

 

EPR, Inc. Series A (a)

 

1,778

 

2,446,016

 

Labcyte, Inc. Series C (a)

 

1,280,000

 

130,000

 

Masimo Corporation Series D

 

1,430,000

 

1,088,436

 

OmniSonics Medical Technologies, Inc. Series B (a)

 

1,308,518

 

1,031,992

 

OmniSonics Medical Technologies, Inc. Series C (a)

 

1,077,400

 

43,478

 

TherOx, Inc. Series H (a)

 

165,216

 

99,646

 

TherOx, Inc. Series I (a)

 

384,733

 

2,813

 

Therox warrants (expiration 1/26/10) (a)

 

0

 

5,427

 

Therox warrants (expiration 6/09/09) (a)

 

0

 

 

 

 

 

$

33,574,441

 

 

1




 

PRINCIPAL

 

 

 

 

 

AMOUNT

 

 

 

VALUE

 

 

 

Convertible Notes (Restricted) – 1.8%

 

 

 

 

 

Drug Discovery Technologies – 1.6%

 

 

 

$

2,000,000

 

Matritech Inc., 15.00% due 2009

 

$

3,261,538

 

 

 

Healthcare Services – 0.2%

 

 

 

211,310

 

CardioNet, Inc. Cvt. Note, 8.00% due 2006

 

211,310

 

112,224

 

CytoLogix Corporation Cvt. Note, 6.75% (b) (c)

 

112,224

 

 

 

 

 

$

3,585,072

 

 

 

TOTAL CONVERTIBLE SECURITIES AND WARRANTS
(Cost $44,511,927)

 

$    37,159,513

 

 

SHARES

 

 

 

 

 

 

 

COMMON STOCKS AND WARRANTS – 75.9%

 

 

 

 

 

Biopharmaceuticals – 26.3%

 

 

 

311,111

 

Akorn, Inc. (a)

 

1,238,222

 

108,889

 

Akorn Inc. warrants (expiration 3/07/11) (a)

 

0

 

201,250

 

Alexza Pharmaceuticals, Inc. (a)

 

1,475,162

 

39,300

 

Amgen, Inc. (a)

 

2,563,539

 

351,500

 

Bioenvision, Inc. (a)

 

1,873,495

 

7,000

 

Celgene Corp. (a)

 

332,010

 

194,180

 

Corcept Therapeutics Inc. (a)

 

786,429

 

534,805

 

Critical Therapeutics, Inc. (a)

 

1,925,298

 

159,672

 

Critical Therapeutics warrants (expiration 6/20/08) (a)

 

0

 

247,653

 

Cubist Pharmaceuticals, Inc. (a)

 

6,235,903

 

33,500

 

Genentech, Inc. (a)

 

2,740,300

 

84,732

 

Genzyme Corporation (a)

 

5,172,889

 

149,425

 

Gilead Sciences, Inc. (a)

 

8,839,983

 

242,325

 

Idenix Pharmaceuticals Inc. (a)

 

2,277,855

 

400,950

 

Insmed Inc. (a)

 

641,520

 

540,559

 

Inspire Pharmaceuticals, Inc. (a)

 

2,513,599

 

93,810

 

MedImmune, Inc. (a)

 

2,542,251

 

82,740

 

Myriad Genetics Inc. (a)

 

2,089,185

 

668,100

 

Point Therapeutics, Inc. (a)

 

1,656,888

 

378,480

 

SGX Pharmaceuticals, Inc. (a)

 

1,949,172

 

375,384

 

Tercica, Inc. (a)

 

1,985,781

 

52,250

 

United Therapeutics Corp. (a)

 

3,018,482

 

 

 

 

 

51,857,963

 

 

 

Drug Delivery – 2.5%

 

 

 

526,855

 

DepoMed, Inc. (a)

 

3,092,639

 

106,760

 

Noven Pharmaceuticals, Inc. (a)

 

1,911,004

 

 

 

 

 

5,003,643

 

 

2




 

SHARES

 

 

 

VALUE

 

 

 

Drug Discovery Technologies – 5.3%

 

 

 

184,848

 

Avalon Pharmaceuticals, Inc. (a)

 

$

626,635

 

19,428

 

Cougar Biotechnology Inc. (Restricted) (a)

 

87,502

 

460,232

 

deCODE Genetics, Inc. (a)

 

2,848,836

 

531,700

 

Pharmacopeia Drug Discovery, Inc. (a)

 

2,126,800

 

120,737

 

Senomyx, Inc. (a)

 

1,742,235

 

156,000

 

ZymoGenetics, Inc. (a)

 

2,959,320

 

200,000

 

Zyomyx, Inc. (Restricted) (a)

 

2,000

 

 

 

 

 

10,393,328

 

 

 

Emerging Biopharmaceuticals – 17.8%

 

 

 

253,420

 

ACADIA Pharmaceuticals, Inc. (a)

 

2,138,865

 

506,354

 

Ariad Pharmaceuticals, Inc. (a)

 

2,283,657

 

290,608

 

Barrier Therapeutics, Inc. (a)

 

1,900,576

 

25,000

 

Coley Pharmaceutical Group Inc (a)

 

288,750

 

174,429

 

Cytokinetics, Inc. (a)

 

1,097,159

 

87,570

 

DOV Pharmaceutical, Inc. (a)

 

185,648

 

723,800

 

Epix Pharmaceuticals, Inc. (a)

 

3,148,530

 

319,380

 

Exelixis, Inc. (a)

 

3,209,769

 

261,311

 

Kosan Biosciences, Inc. (a)

 

1,045,244

 

774,000

 

Lexicon Genetics, Inc. (a)

 

3,397,860

 

62,909

 

Momenta Pharmaceuticals, Inc. (a)

 

799,573

 

41,707

 

Myogen, Inc. (a)

 

1,209,503

 

51,080

 

Myogen, Inc. warrants (expiration 9/29/09) (a)

 

1,082,896

 

322,410

 

Neurogen Corporation (a)

 

1,650,739

 

251,822

 

Nitromed, Inc. (a)

 

1,216,300

 

153,300

 

Rigel Pharmaceuticals, Inc. (a)

 

1,491,609

 

415,700

 

Sangamo BioSciences, Inc. (a)

 

2,452,630

 

455,320

 

Seattle Genetics, Inc. (a)

 

2,094,472

 

60,104

 

Telik, Inc. (a)

 

991,716

 

145,958

 

Theravance, Inc. (a)

 

3,339,519

 

146,982

 

Therion Biologics Corporation (Restricted) (a)

 

1,470

 

 

 

 

 

35,026,485

 

 

 

Generic Pharmaceuticals – 4.3%

 

 

 

305,100

 

Caraco Pharmaceutical Laboratories, Ltd. (a)

 

2,791,665

 

429,582

 

Impax Laboratories, Inc. (a)

 

2,684,887

 

94,708

 

Teva Pharmaceutical Industries, Ltd. (d)

 

2,991,826

 

 

 

 

 

8,468,378

 

 

 

Healthcare Services – 4.5%

 

 

 

148,148

 

Aveta, Inc. (Restricted) (a)

 

1,999,998

 

17,416

 

DakoCytomation, Inc. (Restricted) (e)

 

181,301

 

212,890

 

Emageon, Inc. (a)

 

3,106,065

 

106,500

 

National Medical Health Card Systems, Inc. (a)

 

1,469,700

 

204,139

 

Syntiro Healthcare Services (Restricted) (a)

 

204

 

2,475,000

 

Zix Corp. (a)

 

2,079,000

 

1,485,000

 

Zix Corp. warrants (expiration 10/01/11) (a)

 

0

 

 

 

 

 

8,836,268

 

 

3




 

 

Medical Devices and Diagnostics – 15.2%

 

 

 

100,970

 

Adeza Biomedical Corporation (a)

 

1,415,599

 

458,850

 

Align Technology, Inc. (a)

 

3,390,902

 

298,577

 

Conor Medsystems, Inc. (a)

 

8,237,739

 

58,800

 

Conor Medsystems, Inc. (Restricted) (a)

 

1,541,177

 

73,832

 

Genomic Health Inc. (a)

 

869,003

 

57,920

 

IDEXX Laboratories, Inc. (a)

 

4,351,530

 

130,000

 

Masimo Corporation (Restricted)

 

1,300

 

447,080

 

Medwave, Inc. (a)

 

1,131,112

 

111,770

 

Medwave Inc. (expiration 8/21/11) (a)

 

0

 

717,585

 

Orthovita, Inc. (a)

 

3,028,209

 

139,019

 

Songbird Hearing, Inc. (Restricted) (a)

 

1,390

 

927,713

 

Third Wave Technologies, Inc. (a)

 

2,764,585

 

382,583

 

VNUS Medical Technologies, Inc. (a)

 

3,206,046

 

 

 

 

 

29,938,592

 

 

 

TOTAL COMMON STOCKS AND WARRANTS
(Cost $138,747,379)

 

$

149,524,657

 

 

PRINCIPAL
AMOUNT

 

 

 

 

 

 

 

SHORT-TERM INVESTMENTS – 4.6%

 

 

 

$

6,000,000

 

American Express Corp.;
5.25% due 07/07/06

 

5,994,750

 

2,994,000

 

United Parcel Service America Inc.;
4.95% due 07/05/06

 

2,992,353

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $8,987,103)

 

$         8,987,103

 

 

 

TOTAL INVESTMENTS – 99.3%
(Cost $192,246,409)

 

$

195,671,273

 

 

 

OTHER ASSETS IN EXCESS OF LIABILITIES – 0.7%

 

1,306,299

 

 

 

NET ASSETS - 100%

 

$

196,977,572

 

 


(a)          Non-income producing security.

(b)         Affiliated issuers in which the Fund holds 5% or more of the voting securities (Total Market Value of $10,818,594).

(c)          Variable maturity.

(d)         American Depositary Receipt.

(e)          Foreign security.

4




HQL

Investment Securities Valuation - Investments traded on national securities exchanges or in the over-the-counter market that are National Market System securities are valued at the last sale price or, lacking any sales, at the mean between the last bid and asked prices.  Other over-the-counter securities are valued at the most recent bid prices as obtained from one or more dealers that make markets in the securities.  Exchange-traded investments for which market quotations are not readily available are valued at fair value as determined in good faith by the Trustees of the Fund.  The fair value of venture capital and other restricted securities is determined in good faith by the Trustees.  However, because of the uncertainty of fair valuations these estimated values may differ significantly from the values that would have been used had a ready market for these securities existed, and the differences could be material.  Each such fair value determination is based on a consideration of relevant factors.  Factors the Trustees consider may include (i) the existence of any contractual restrictions on the disposition of securities; (ii) information obtained from the issuer which may include an analysis of the company’s financial statements, the company’s products or intended markets or the company’s technologies; and (iii) the price of a security negotiated at arm’s length in an issuer’s completed subsequent round of financing.  Short-term investments with maturity of 60 days or less are valued at amortized cost.

Venture Capital and Other Restricted Securities - The following table details the acquisition date, cost, carrying value per unit, and value of the Fund’s venture capital and other restricted securities at June 30, 2006, as determined by the Trustees of the Fund.  The Fund may invest up to 40% of its net assets in venture capital and other restricted securities.  The values of these securities represent 21% of the Fund’s net assets at June 30, 2006.  With the exception of Conor Medsystems, Inc. Restricted Common, the Fund on its own does not have the right to demand that such securities be registered.  Subject to certain conditions, the Fund has the right to request registration of Conor Medsystems, Inc. Restricted Common.

 

 

 

 

 

 

 

Carrying

 

 

 

 

 

Acquisition

 

 

 

Value

 

 

 

Security (e)

 

Date

 

Cost

 

per Unit

 

Value

 

Agensys, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

2/14/02, 9/27/05

 

$

2,204,684

 

$

2.95

 

$

2,200,201

 

Agilix Corporation

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

11/8/01

 

1,711,313

 

0.06

 

94,540

 

Aveta, Inc.

 

 

 

 

 

 

 

 

 

Restricted Common

 

12/21/05

 

1,999,998

 

13.50

 

1,999,998

 

CardioNet, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

5/3/01 - 3/25/03

 

3,701,130

 

3.50

 

3,680,001

 

Convertible Note

 

8/15/05

 

211,310

 

100.00

 

211,310

 

Ceres, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

12/23/98

 

1,000,875

 

6.00

 

1,500,000

 

Series C-1 Cvt. Pfd.

 

3/31/01

 

74,325

 

6.00

 

128,772

 

Series D Cvt. Pfd.

 

3/14/01

 

1,046,778

 

6.00

 

1,053,240

 

Concentric Medical, Inc.

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

5/7/02, 1/24/03

 

2,219,473

 

1.40

 

4,529,410

 

Series C Cvt. Pfd.

 

12/19/03

 

999,999

 

1.40

 

1,627,906

 

Series D Cvt. Pfd.

 

9/30/05

 

638,511

 

1.40

 

637,466

 

Conor Medsystems, Inc.

 

 

 

 

 

 

 

 

 

Restricted Common

 

10/23/03-8/6/04

 

351,643

 

26.21

 

1,541,177

 

Corus Pharma, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

4/8/04

 

2,004,597

 

0.58

 

1,000,000

 

Cougar Biotechnology Inc.

 

 

 

 

 

 

 

 

 

Series A Cvt. Pfd.

 

3/30/06

 

787,501

 

4.50

 

787,498

 

Restricted Common

 

3/30/06

 

87,500

 

4.50

 

87,502

 

CytoLogix Corporation

 

 

 

 

 

 

 

 

 

Series A Cvt. Pfd.

 

1/13/98-7/21/99

 

1,077,912

 

0.83

 

265,789

 

Series B Cvt. Pfd.

 

1/11/01

 

506,622

 

0.83

 

124,922

 

Convertible Note

 

5/29/02

 

112,224

 

100.00

 

112,224

 

Dako A/S

 

 

 

 

 

 

 

 

 

Restricted Common

 

6/14/04

 

734,913

 

10.41

 

181,301

 

EPR, Inc.

 

 

 

 

 

 

 

 

 

Series A Cvt. Pfd.

 

3/9/94

 

800,331

 

0.01

 

1,778

 

Galileo Pharmaceuticals, Inc.

 

 

 

 

 

 

 

 

 

Series F-1 Cvt. Pfd.

 

8/18/00

 

2,001,929

 

0.00

 

93

 

Labcyte, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

7/18/05

 

1,282,337

 

0.52

 

1,280,000

 

Masimo Corporation

 

 

 

 

 

 

 

 

 

Series D Cvt. Pfd.

 

8/14/96

 

910,530

 

11.00

 

1,430,000

 

Restricted Common

 

3/31/98

 

0

 

0.01

 

1,300

 

Matritech, Inc.

 

 

 

 

 

 

 

 

 

Convertible Note

 

1/17/06

 

2,013,664

 

163.08

 

3,261,538

 

Omnisonics Medical Technologies, Inc.

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

5/24/01

 

1,606,312

 

1.20

 

1,308,518

 

Series C Cvt. Pfd.

 

10/1/03

 

1,200,224

 

1.04

 

1,077,400

 

PHT Corporation

 

 

 

 

 

 

 

 

 

Series D Cvt. Pfd.

 

7/23/01

 

2,803,841

 

0.78

 

2,800,000

 

Series E Cvt. Pfd.

 

9/12/03-12/17/03

 

627,472

 

0.78

 

626,337

 

 




 

 

 

 

 

 

 

Carrying

 

 

 

 

 

Acquisition

 

 

 

Value

 

 

 

Security (e)

 

Date

 

Cost

 

per Unit

 

Value

 

Raven biotechnologies, Inc.

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

12/12/00

 

2,001,150

 

0.83

 

1,006,060

 

Series C Cvt. Pfd.

 

11/26/02

 

1,554,400

 

0.83

 

1,554,401

 

Series D Cvt. Pfd.

 

6/23/05

 

803,610

 

0.29

 

800,000

 

Songbird Hearing, Inc.

 

 

 

 

 

 

 

 

 

Restricted Common

 

12/14/00

 

2,003,239

 

0.01

 

1,390

 

Syntiro Healthcare Services

 

 

 

 

 

 

 

 

 

Restricted Common

 

2/5/97

 

800,325

 

0.001

 

204

 

TargeGen, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

8/30/05

 

1,842,331

 

1.30

 

1,840,001

 

Therion Biologics Corporation

 

 

 

 

 

 

 

 

 

Series A Cvt. Pfd.

 

8/20/96-10/16/96

 

289,847

 

0.01

 

309

 

Series B Cvt. Pfd.

 

6/22/99

 

600,929

 

0.01

 

1,600

 

Series C Cvt. Pfd.

 

9/26/01-10/15/01

 

1,019,568

 

0.01

 

2,718

 

Series C-2 Cvt. Pfd.

 

8/13/03

 

40,003

 

0.01

 

222

 

Sinking Fund Cvt. Pfd.

 

10/18/94-4/3/96

 

582,505

 

0.01

 

290

 

Restricted Common

 

6/30/93

 

251,642

 

0.01

 

1,470

 

TherOx, Inc.

 

 

 

 

 

 

 

 

 

Series H Cvt. Pfd.

 

9/11/00

 

2,001,626

 

3.80

 

165,216

 

Series I Cvt. Pfd.

 

7/8/05

 

386,273

 

3.86

 

384,733

 

Xanthus Life Sciences, Inc.

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

12/5/03, 3/23/06

 

1,645,880

 

1.00

 

1,645,000

 

Zyomyx, Inc.

 

 

 

 

 

 

 

 

 

Series A New Cvt. Pfd.

 

2/19/99, 1/12/04

 

199,800

 

0.10

 

20,000

 

Series B New Cvt. Pfd.

 

3/31/04

 

112

 

0.10

 

20

 

New Restricted Common

 

2/19/99-7/22/02

 

2,401,101

 

0.01

 

2,000

 

 

 

 

 

$

53,142,289

 

 

 

$

40,975,855

(f)

 


(e) See Schedule of Investments and corresponding footnotes for more information on each issuer.

(f) Represents 21% of the Fund’s net assets as of June 30, 2006.

 

Federal Income Tax Cost- At June 30, 2006, the total cost of securities for Federal income tax purposes was $192,246,409. The net unrealized gain on securities held by the Fund was $3,424,864, including gross unrealized gain of $43,423,675 and gross unrealized loss of $39,998,811.

Affiliate Transactions – An affiliate issuer is a company in which the Fund holds 5% or more of the voting securities.  Transactions with such companies during the nine months ended June 30, 2006 were as follows:

Issuer

 

Value on
October 1, 2005

 

Purchases

 

Sales

 

Income

 

Value on
June 30, 2006

 

Agilix Corporation

 

$

380,952

 

$

 

$

 

$

 

$

94,540

 

Concentric Medical, Inc.

 

6,794,782

 

 

 

 

6,794,782

 

CytoLogix Corporation

 

502,935

 

 

 

5,681

 

502,935

 

PHT Corporation

 

3,426,337

 

 

 

 

3,426,337

 

 

 

$

11,105,006

 

$

 

$

 

$

5,681

 

$

10,818,594

 

 




Item 2.  Controls and Procedures.

(a.)          The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-Q is (i) accumulated and communicated to the investment company’s management, including its certifying officers, to allow timely decisions regarding required disclosure; and (ii) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b.)          There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)).  Filed herewith.




SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)

H&Q Life Sciences Investors

 

 

By (Signature and Title)

/s/ Daniel Omstead

 

 

   Daniel Omstead, President

 

 

Date

8/29/06

 

 

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*

/s/ Kathleen Eckert

 

 

Kathleen Eckert, Treasurer

 

 

Date

8/29/06